Consumer's Equilibrium and Demand-Demand (CBSE Class-12 Economics): Questions 38 - 47 of 62

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Question number: 38

» Consumer's Equilibrium and Demand » Demand » Determinants of Demand

Essay Question▾

Describe in Detail

What is the relation between good X and good Y in each case, if with fall in price of X demand for good Y (i) rises and (ii) falls? Give reason.

Explanation

  1. With fall in the price of x, demand for good Y rises: - This situation suggests that these are supplementary goods because supplementary goods are those which are used together for example car and petrol.
  2. With fall in the price of X, demand for good Y falls: - This situation… (29 more words) …

Question number: 39

» Consumer's Equilibrium and Demand » Demand » Elasticity of Demand

Short Answer Question▾

Write in Short

Price elasticity of demand for good is (-) 2. The consumer buys a certain quantity of this good at a price of Rs. 8 per unit. When the price falls he buys 50 percent more quantity. What is the new price?

Question number: 40

» Consumer's Equilibrium and Demand » Demand » Elasticity of Demand

Essay Question▾

Describe in Detail

When price of a good falls from Rs. 10 per unit to Rs. 9 per unit, its demand rises from 9 units to 10 units. Compare expenditures on the good to find price elasticity of demand.

Explanation

price elasticity of demand

Calculatetion of price elasticity of demand.

Price (Rs)

Quantity demanded (units)

Total Expenditure (Rs)

10

9

90

9

10

90

So, price elasticity of demand is equal to unity.

Question number: 41

» Consumer's Equilibrium and Demand » Demand » Demand Schedule

Short Answer Question▾

Write in Short

What is a demand schedule?

Question number: 42

» Consumer's Equilibrium and Demand » Demand » Demand Schedule

Short Answer Question▾

Write in Short

Define deflationary gap.

Question number: 43

» Consumer's Equilibrium and Demand » Demand » Market Demand

One Liner Question▾

Write in Brief

Define market demand.

Question number: 44

» Consumer's Equilibrium and Demand » Demand » Demand Curve

Essay Question▾

Describe in Detail

Explain the effect of the following on demand for a good.

(i) Rise in income

(ii) Rise in prices of related goods

Explanation

(i) Rise in income increase demand of a normal good then demand curve of the goods shifts to the right from D1 to D2. The demand at the same price OP rises from OQ1 to OQ2. It is given in diagram.

Rise in price of related good make good X

Rise in Price of Related Good Make Good X… (157 more words) …

Question number: 45

» Consumer's Equilibrium and Demand » Demand » Elasticity of Demand

Short Answer Question▾

Write in Short

When is the demand of commodity said to be elastic?

Question number: 46

» Consumer's Equilibrium and Demand » Demand » Demand Curve

Essay Question▾

Describe in Detail

Explain the effect of following on the market demand of a commodity:

(i) Change in price of related goods

(ii) Change in the number of its buyers.

Explanation

(I) Change in price of related goods: -

Quantity demand of good is depended on market price of goods. When demand for one good changes than there is a change in market price of the other good.

  • Substitute Goods: - In this when price of good decreases than the supply… (83 more words) …

Question number: 47

» Consumer's Equilibrium and Demand » Demand » Demand Curve

Essay Question▾

Describe in Detail

With the help of a diagram explain the effect of “decrease” in demand of a commodity on its equilibrium price and quantity.

Explanation

The effect of decrease in demand of commodity on its equilibrium price and quantity has two categories:

(A) Under short – run with fixed number of firms

(B) Under long-run with free entry and exit of firms

Under short – run with fixed number of firms: -

The effect of “decrease” in demand

The Effect of… (182 more words) …

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